We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

German Consumer Confidence Rises to a 5-Year High

THE TAKEAWAY: GFK Consumer Confidence Survey rises to a 5-year high in May -> German economy predicted to expand by 0.5% in 2013 -> Euro falls below 1.3100

German consumer has set a new five year high according to the GFK survey for May. Consumer confidence was reported at 6.2, beating expectations for 5.9 and up from the revised 6.0 survey result in April. Income expectations rose to 30.8 in April from 29.4 the previous month, while the willingness to buy rose to 37.6 from 36.2 in March.

The German economy is the biggest in the Euro-zone and has been one of the stronger economies through the Euro-debt crisis. However, German GDP declined by 0.6% in Q4, and the German government and Bundesbank are both predicting only 0.4% growth in 2013. Signs of improved economic growth in Germany are Euro positive.

However, the Euro did not significantly react to the better than confidence survey and instead fell back below 1.3100 against the US Dollar. Support may now be provided by the key 1.3000 figure, and resistance may come in by a 2-month high at 1.3201.

(How does a Currency War affect your FX trading? Take our free course to find out!)

Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. Forex trading involves risk. Losses can exceed deposits. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading.

FX Publications Inc (dba DailyFX) is registered with the Commodities Futures Trading Commission as a Guaranteed Introducing Broker and is a member of the National Futures Association (ID# 0517400). Registered Address: 32 Old Slip, Suite 803; New York, NY 10005. FX Publications Inc is a subsidiary of IG US Holdings, Inc (a company registered in Delaware under number 4456365)